Lenders lose out over payment protection

Share via

A ban on the immediate sale of payment protection insurance to people when
they apply for credit cards or loans is expected to come into force within a
year after a key decision by the competition watchdog.

The Competition Commission said yesterday that it was pressing ahead with
plans for a seven-day “cooling off” period that would prevent banks and
building societies pushing PPI on to customers when they applied for credit.

The decision comes after a legal challenge last year from Barclays, with the
support of Lloyds Banking Group, which argued that a ban would be
inconvenient for consumers